JAL to Supreme Court: Will deposit Rs 600-cr cheques after nod for sale of cement assets

By: | Updated: July 17, 2018 5:29 AM

Jaiprakash Associates (JAL) on Monday told the Supreme Court that it will deposit post-dated cheques of Rs 600 crore with the registrar subject to it being granted prior approval to dispose of its cement assets, including its cement plant at Rewa in Madhya Pradesh.

Senior counsel Fali Nariman, appearing for JAL, told a bench led by Chief Justice Dipak Misra.

Jaiprakash Associates (JAL) on Monday told the Supreme Court that it will deposit post-dated cheques of Rs 600 crore with the registrar subject to it being granted prior approval to dispose of its cement assets, including its cement plant at Rewa in Madhya Pradesh.

Senior counsel Fali Nariman, appearing for JAL, told a bench led by Chief Justice Dipak Misra that JAL was ready to deposit cheques with assigned dates for its encashment on the condition that it should allow National Company Law Tribunal, Allahabad, to proceed with the case for sanctioning of the Scheme of Arrangement filed by JAL pursuant to a Master Restructuring Agreement signed and accepted by all 32 creditors of JAL.

Besides, the company wants that Interim Resolution Professional Anuj Jain, appointed by the tribunal, should give back management to the promoters.

While assuring the apex court that all the cheques dating between July 16 to August 27 will be honoured on their due dates, it also wants a clarification that “since JAL has already undertaken to deposit post-dated cheques aggregating to Rs 600 crore with the registrar of the SC, the stay of the liquidation proceedings will continue and there shall also be a stay of the direction that the IRP shall remain in the management.”

A concrete proposal duly signed by the directors of JAL and Jaypee Infratech (JIL), the company in liquidation, with regard to the outstanding dues to 13 bankers has been submitted to the lead bank IDBI for “favourable consideration and acceptance,” JAL said in its eight-page note submitted to the SC.

The proposal came pursuant to the SC asking JAL on July 4 to come up with a credible financial plan for deposit of Rs 600 crore for refund of principal amount to homebuyers who have opted to take refund. Earlier the court had on May 16 directed JAL to deposit Rs 1,000 crore by June 15.

While JAL in November was asked to deposit the Rs 2,000 crore in instalments so as to cover part of its subsidiary JIL’s liability towards 30,000 homebuyers, the company has so far deposited only Rs 750 crore with the SC registry for ensuring refund to homebuyers.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition